<p>UNITED STATES DEPARTMENT OF AGRICULTURE TN NOTICE CRP-1</p><p>Farm Service Agency Tennessee FSA State Office Nashville, Tennessee 37203</p><p>For: County Offices</p><p>Cost Share Policies and State Average Cost List For Conservation Practices Approved by: State Executive Director</p><p>1 Overview</p><p>A Purposes</p><p>The purpose of this notice is to provide an updated State Average Cost List to be used for CRP. The list was compiled by NRCS/FSA and approved by the STC.</p><p>2 Cost List </p><p>A Rates (Exhibit 1)</p><p>Exhibit 1 lists:</p><p> CRP practices and components that are allowed.  State average cost of materials and services used for components of practices.  CRP cost-share rate for each component of the technical practice.</p><p>B Effective Date of Cost List The State Average Cost List is effective as of the date of this notice.</p><p>CRP cost-shares earned shall be computed using the rates in effect when the initial AD-245 is processed. Except for mid-management activities, the AD-245 shall be processed immediately after approving CRP-1.</p><p>Disposal Date Distribution</p><p>Until Superseded County Offices Page 1 TN NOTICE CRP-1</p><p>3 Methods of Expressing Cost-Share Rates</p><p>A Flat Rates</p><p>Using the flat rate method, the participant is paid 50% of the state average cost. The flat rates for CRP are shown in the C/S rate column on Exhibit 1. The cost-share per component may exceed the participant’s actual cost; however, the cost-share payment made to a participant shall not exceed the participant’s actual contribution to the cost of establishing the CRP conservation practice. Refer to 7 CFR, Part 704.14 for CRP.</p><p>If cost-shares exceed the total of the participant’s contribution, reduce the total payment to the total cost of performing the practice. (Obtain itemized bills, including personal labor.)</p><p>B Percent-of-Cost-Not-to-Exceed Cost-Share Rates</p><p>The “percent-of-cost-not-to-exceed” method computes cost-shares using the actual cost of the component, times the 50% cost-share rate, not to exceed 50% of the state average cost per unit of measure. The state average cost and the 50% rate are shown on Exhibit 1. </p><p>4 Cost-Share Estimates on Conservation Plan</p><p>A Cost-Share Estimate</p><p>The technical agency will show on the CPO the estimated cost-shares for each NRCS technical practice code. Revisions to the CPO are not needed when changes take place in estimated costs. (Refer to 2-CRP (Rev. 4), subparagraph 240B.) Cost-share payments for practices with engineering type practices will be determined using units from NRCS Form ENG-8.</p><p>5 Providing Cost-Share Data to Participants</p><p>A Participants should be made aware that estimated cost-shares shown on the Conservation Plan are only estimates. The actual cost-shares will be determined by soil test requirements, actual hours needed to install the practice component, etc. To ensure that the participant is aware of the eligible cost-shares for a practice, FSA should provide the participant with a copy of the CRP cost-share rates for individual components of the practices being installed. Exhibit 1 can be used to provide this information when the participant submits the CRP-1.</p><p>Page 2 TN NOTICE CRP-1</p><p>6 Cost-Share Policies</p><p>A Fences</p><p>For CRP, cost-share is authorized only for permanent fences. State flat rate is based on the average cost of installing a 4-strand barbed wire fence. </p><p>B Nutrient Requirements</p><p>Nutrients are applied according to NRCS specifications for the practice. When the practice specifications require nutrients to be applied according to a soil test, this will be noted on the job sheet. Nutrients will be applied and paid based on the soil test requirements. The job sheet or CPO will not be revised to show the soil test results.</p><p>C Fertilizer Mixtures</p><p>The State Average Cost-List provides a State average cost for determining a flat rate for each fertilizer element. When the fertilizer is bought in a mixture such as DAP, it is impossible for County FSA Offices to arrive at the cost of individual fertilizer elements. In this case, compute cost-shares using the lbs. required by the soil test, times the State flat rate.</p><p>D Maximum Cost-Shares For Livestock Watering Facilities Under Practices CP21, CP22 and CP29</p><p>Cost-shares to establish livestock watering facilities are limited by handbook procedure. Refer to 2-CRP (Rev. 4), paragraph 483 and TN Exhibit 1. Water Development C/S limit of $3,000 per contract. Water Facility C/S limit of $2,000 per contract.</p><p>E Labor and Incidentals</p><p>Labor is included in cost on all items listed on cost list. Small incidental items such as lumber, hardware, steel posts are generally included in cost of components.</p><p>Page 3 TN NOTICE CRP-1</p><p>7 Obtaining Costs for the State Average Cost List</p><p>A Estimated Cost</p><p>Estimated costs of eligible cost-share and incentive payments have been obtained from representative NRCS field offices, in consultation with local County FSA Offices, throughout the State. The sources used include dealer cost quotations or advertised prices, and applications for payment. </p><p>FSA is responsible for obtaining cost data used to determine estimated costs for CRP. (See 2-CRP (Rev. 4), subparagraph 446). FSA should periodically compare applications for payment to determine if the State Average Cost List adequately reflects costs paid by producers. Discuss significant differences and supporting data with NRCS and recommend changes when needed. </p><p>8 Superseded Cost Lists</p><p>A Superseded Cost Lists </p><p>Superseded cost lists shall be kept on file in the County FSA Office until all contracts approved using that list have expired. Lists that should be on file are:</p><p> TN Notice CONOP-18 (Middle Tennessee State Average Cost List)  TN Notice CONOP-19 (East Tennessee State Average Cost List)  TN Notice CONOP-20 (West Tennessee State Average Cost List)</p><p>Page 4 </p>